GLOBAL ECONOMICS
GRADE 12 ECONOMICS
COMPLETE STUDY NOTES
Based on the 2018 E.C. slide presentation
Prepared by Abi Dawud
© 2026 Abi Dawud. All rights reserved.
English-language edition
, TABLE OF CONTENTS
Introduction and Units One–Two
INTRODUCTION
Introduction to Economics Slide 2 | PDF p. 5
Definitions, Scarcity and Choice Slide 3 | PDF p. 6
Branches of Economics: Microeconomics and Macroeconomics Slide 4 | PDF p. 7
UNIT ONE: THE FUNDAMENTAL CONCEPTS OF MACROECONOMICS
Meaning, Scope and Focus Areas of Macroeconomics Slide 10 | PDF p. 13
Macroeconomic Goals and Variables Slide 12 | PDF p. 15
GDP and GNP: Concepts and Characteristics Slide 19 | PDF p. 22
Limitations of GDP and GNP Slide 22 | PDF p. 25
Approaches to Measuring GDP/GNP Slide 28 | PDF p. 31
Nominal GDP and Real GDP Slide 32 | PDF p. 35
Key Challenges in Macroeconomics Slide 38 | PDF p. 41
Economic Growth Slide 38 | PDF p. 41
Inflation: Meaning, Causes and Measurement Slide 45 | PDF p. 48
Types of Inflation Slide 52 | PDF p. 55
Unemployment: Meaning and Measurement Slide 54 | PDF p. 57
Types of Unemployment Slide 57 | PDF p. 60
Business Cycles Slide 60 | PDF p. 63
Balance of Trade and Balance of Payments Slide 63 | PDF p. 66
Schools of Thought in Macroeconomic Analysis Slide 67 | PDF p. 70
UNIT TWO: AGGREGATE DEMAND AND AGGREGATE SUPPLY ANALYSIS
Aggregate Demand: Components and Determinants Slide 79 | PDF p. 82
The Aggregate Demand Curve Slide 89 | PDF p. 92
Aggregate Supply: Concepts and Curves Slide 100 | PDF p. 103
Short-Run Aggregate Supply (SRAS) Slide 106 | PDF p. 109
Changes and Shifts in SRAS Slide 118 | PDF p. 121
Long-Run Aggregate Supply (LRAS) Slide 123 | PDF p. 126
Equilibrium of Aggregate Demand and Aggregate Supply Slide 125 | PDF p. 128
Shocks to Aggregate Demand and Aggregate Supply Slide 129 | PDF p. 132
GLOBAL ECONOMICS | GRADE 12 2
, TABLE OF CONTENTS
Units Three–Four
UNIT THREE: MARKET FAILURE AND CONSUMER PROTECTION
Introduction to Market Failure Slide 137 | PDF p. 140
Causes and Types of Market Failure Slide 139 | PDF p. 142
Externalities: Negative and Positive Slide 144 | PDF p. 147
Externalities and Economic Efficiency Slide 149 | PDF p. 152
Public Goods and Their Characteristics Slide 161 | PDF p. 164
Free-Rider Problem Slide 167 | PDF p. 170
Asymmetric Information Slide 170 | PDF p. 173
Adverse Selection and Moral Hazard Slide 172 | PDF p. 175
Consumer Protection: Meaning and Rationale Slide 178 | PDF p. 181
Consumer Rights and Consumer Protection in Ethiopia Slide 181 | PDF p. 184
UNIT FOUR: MACROECONOMIC POLICY INSTRUMENTS
Definition, Types and Objectives of Macroeconomic Policies Slide 186 | PDF p. 189
Fiscal Policy: Meaning and Tools Slide 189 | PDF p. 192
Components of Government Spending and Revenue Slide 191 | PDF p. 194
Expansionary Fiscal Policy Slide 196 | PDF p. 199
Contractionary Fiscal Policy Slide 201 | PDF p. 204
Monetary Policy: Meaning and Tools Slide 206 | PDF p. 209
Open Market Operations, Discount Rate and Reserve Ratio Slide 207 | PDF p. 210
Expansionary and Contractionary Monetary Policy Slide 213 | PDF p. 216
Income Policy and Wage Determination Slide 221 | PDF p. 224
Minimum Wage: Advantages and Disadvantages Slide 225 | PDF p. 228
Price Control: Price Ceiling and Price Floor Slide 228 | PDF p. 231
Foreign Exchange Policy and Exchange Rates Slide 232 | PDF p. 235
Fixed, Floating and Managed Exchange Rates Slide 235 | PDF p. 238
Devaluation, Revaluation, Depreciation and Appreciation Slide 236 | PDF p. 239
Factors Affecting Foreign Exchange Rates Slide 244 | PDF p. 247
GLOBAL ECONOMICS | GRADE 12 3
, Economics
Grade
12 Short Note
2018 E.C
GRADE 12 ECONOMICS
COMPLETE STUDY NOTES
Based on the 2018 E.C. slide presentation
Prepared by Abi Dawud
© 2026 Abi Dawud. All rights reserved.
English-language edition
, TABLE OF CONTENTS
Introduction and Units One–Two
INTRODUCTION
Introduction to Economics Slide 2 | PDF p. 5
Definitions, Scarcity and Choice Slide 3 | PDF p. 6
Branches of Economics: Microeconomics and Macroeconomics Slide 4 | PDF p. 7
UNIT ONE: THE FUNDAMENTAL CONCEPTS OF MACROECONOMICS
Meaning, Scope and Focus Areas of Macroeconomics Slide 10 | PDF p. 13
Macroeconomic Goals and Variables Slide 12 | PDF p. 15
GDP and GNP: Concepts and Characteristics Slide 19 | PDF p. 22
Limitations of GDP and GNP Slide 22 | PDF p. 25
Approaches to Measuring GDP/GNP Slide 28 | PDF p. 31
Nominal GDP and Real GDP Slide 32 | PDF p. 35
Key Challenges in Macroeconomics Slide 38 | PDF p. 41
Economic Growth Slide 38 | PDF p. 41
Inflation: Meaning, Causes and Measurement Slide 45 | PDF p. 48
Types of Inflation Slide 52 | PDF p. 55
Unemployment: Meaning and Measurement Slide 54 | PDF p. 57
Types of Unemployment Slide 57 | PDF p. 60
Business Cycles Slide 60 | PDF p. 63
Balance of Trade and Balance of Payments Slide 63 | PDF p. 66
Schools of Thought in Macroeconomic Analysis Slide 67 | PDF p. 70
UNIT TWO: AGGREGATE DEMAND AND AGGREGATE SUPPLY ANALYSIS
Aggregate Demand: Components and Determinants Slide 79 | PDF p. 82
The Aggregate Demand Curve Slide 89 | PDF p. 92
Aggregate Supply: Concepts and Curves Slide 100 | PDF p. 103
Short-Run Aggregate Supply (SRAS) Slide 106 | PDF p. 109
Changes and Shifts in SRAS Slide 118 | PDF p. 121
Long-Run Aggregate Supply (LRAS) Slide 123 | PDF p. 126
Equilibrium of Aggregate Demand and Aggregate Supply Slide 125 | PDF p. 128
Shocks to Aggregate Demand and Aggregate Supply Slide 129 | PDF p. 132
GLOBAL ECONOMICS | GRADE 12 2
, TABLE OF CONTENTS
Units Three–Four
UNIT THREE: MARKET FAILURE AND CONSUMER PROTECTION
Introduction to Market Failure Slide 137 | PDF p. 140
Causes and Types of Market Failure Slide 139 | PDF p. 142
Externalities: Negative and Positive Slide 144 | PDF p. 147
Externalities and Economic Efficiency Slide 149 | PDF p. 152
Public Goods and Their Characteristics Slide 161 | PDF p. 164
Free-Rider Problem Slide 167 | PDF p. 170
Asymmetric Information Slide 170 | PDF p. 173
Adverse Selection and Moral Hazard Slide 172 | PDF p. 175
Consumer Protection: Meaning and Rationale Slide 178 | PDF p. 181
Consumer Rights and Consumer Protection in Ethiopia Slide 181 | PDF p. 184
UNIT FOUR: MACROECONOMIC POLICY INSTRUMENTS
Definition, Types and Objectives of Macroeconomic Policies Slide 186 | PDF p. 189
Fiscal Policy: Meaning and Tools Slide 189 | PDF p. 192
Components of Government Spending and Revenue Slide 191 | PDF p. 194
Expansionary Fiscal Policy Slide 196 | PDF p. 199
Contractionary Fiscal Policy Slide 201 | PDF p. 204
Monetary Policy: Meaning and Tools Slide 206 | PDF p. 209
Open Market Operations, Discount Rate and Reserve Ratio Slide 207 | PDF p. 210
Expansionary and Contractionary Monetary Policy Slide 213 | PDF p. 216
Income Policy and Wage Determination Slide 221 | PDF p. 224
Minimum Wage: Advantages and Disadvantages Slide 225 | PDF p. 228
Price Control: Price Ceiling and Price Floor Slide 228 | PDF p. 231
Foreign Exchange Policy and Exchange Rates Slide 232 | PDF p. 235
Fixed, Floating and Managed Exchange Rates Slide 235 | PDF p. 238
Devaluation, Revaluation, Depreciation and Appreciation Slide 236 | PDF p. 239
Factors Affecting Foreign Exchange Rates Slide 244 | PDF p. 247
GLOBAL ECONOMICS | GRADE 12 3
, Economics
Grade
12 Short Note
2018 E.C
